Why are we concerned about JPMorgan’s role in the Bitcoin ETF?
JPMorgan, one of the world’s largest banks, is listed as an authorized participant in the BlackRock Bitcoin ETF. This means that banks can act as custodians of new Bitcoin products. This may raise alarms among some who are familiar with JPMorgan’s other market trading.
Basically, JPMorgan gained some kind of notoriety after the financial markets collapsed during the 2008 recession. Financial giants have come under scrutiny from investors and regulators alike. It’s common for major U.S. financial institutions to face numerous lawsuits each year, but JPM excels at this, resulting in significant fines.
Most recently, JPMorgan, which dates back to 1854. reached A tentative settlement has been reached over a woman’s legal claim that a US bank knowingly profited from sexual abuse at the hands of financier Jeffrey Epstein. The number of plaintiffs has grown to more than 100 women, and the value has reached $290 million.
The largest fine was for a precious metals trader at JPMorgan who continuously manipulated gold and silver markets over a seven-year period. JPMorgan agreed to a settlement of more than $920 million and pleaded guilty to a U.S. federal market manipulation investigation into its metals futures and Treasury bond trading. JPMorgan traders engaged in “spoofing,” which attempted to create the illusion of demand or lack of demand.
JPMorgan was fined a whopping $5.29 billion. In 2012, foreclosure proceedings involved “deceptive practices in loan modification proposals” for “robo-signing” affidavits. Failure to provide pre-foreclosure non-foreclosure alternatives to borrowers with federally insured mortgages; and filing improper documents in federal bankruptcy court.”
In 2014, JPM was fined $1.34 billion for currency manipulation.side by side UBS, Citigroup, Royal Bank of Scotland For currency manipulation and collusion-like efforts. JPM also experienced difficulties while conducting business in the municipal bond market.
J.P. Morgan was forced to admit to and acknowledge wrongdoing in an anti-competition lawsuit with the U.S. Department of Justice (DOJ). “By entering into illegal contracts to manipulate bids for certain investment contracts, JPMorgan and its former executives deprived local governments of the competitive process they deserve,” said Deputy Attorney General Christine Varney in response to the case. . The charges stem from actions the company took from 2001 to 2006.
These are just some of the fines. Bitcoin investors should be aware that the somewhat infamous Wall Street bank is likely to play a very important role in Bitcoin ETFs, and the industry could one day expect JPMorgan to pay a record fine for its conduct in the Bitcoin ETF market. You can also watch it being imposed.
This is known as counterparty risk. And as any Bitcoiner knows, that’s not good. That’s why the industry has long tried to champion cold wallets and the power of individuals holding Bitcoin directly. This eliminates the possibility of third parties holding Bitcoin and causing them to suffer. This also makes it impossible for JPMorgan to hold a significant portion of the total Bitcoin supply at some point.
Also Read: JPMorgan Pioneers Banking in the Metaverse
